Rental Prices Are Continuing to Increase
Rental prices are continuing to increase in the United Kingdom and show no signs of slowing down. Data from the Office for National statistics has shown that they rose 8.4% in a 12-month period. In Northern Ireland, this was a staggering 9.5%. The highest price for rent was in England, where the average hit £1336. In Wales, it climbed to £760, and in Scotland, it also went up to £973. These are the highest increases since records began in 2015.
The largest increase for a given area has been in the capital, London. The average rent increased by 10.6%, pushing it up to an average of £2,035. Despite this, it is still cheaper than around eight other European capitals, including Rome, Paris, and Amsterdam.
There have been several reasons why it is believed these prices have increased. The first is the cost of maintaining and running a rental property. There is also a huge shortage of properties, which has increased demand and pushed up rents with it.
House Prices Are Also Up
House prices are also up, and in July 2024 they hit their peak, being an average of £288,533 per property. The figure included a variation of properties, from terraced houses to semi-detached, along with flats and maisonettes. This was despite a small dip in January of the same year.
It also became a time period when, for much of the UK, it became more affordable to rent a property than to buy one. This was due to a doubling of the fixed-year mortgage rate. While this was bad news for anyone looking to buy and remains so, it is great for anyone who has a property they wish to sell. There are companies on the market who advertise as cash home buyers, who are looking to buy property and quickly turn it around for rental or sales. With high prices, now is a great time to sell any vacant properties that have been acquired, especially those that need renovation.
Around 1.5 Million New Homes Are on Their Way
A solution is on the way, so it is unlikely this trend will continue forever. The government has set out proposals to create 1.5 million new homes. It will be done through the development of local land in what is known as grey belt areas. This describes an area of unattractive land, such as wasteland or disused car parks. It will also make planning permission more readily available.
It is hoped that this will give local councils the power to build affordable social homes. Developments will have to be proportionate to the size of the existing communities, ensuring there is no overbuilding or under-building.
It will be some time before these changes happen, so for the next year at least the trend may increase. The UK housing market is changing, and with it, these figures will also change.